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What tax exemption applies to tourist guides?
What tax exemption applies to tourist guides?
The tour guides cooperating with the tourism company I manage have not been able to benefit from the 75% tax exemption introduced by the amendments to the Tax Code in 2024, which has resulted in an increased tax burden for them. We have heard that, starting this year, new tax exemptions are being granted for a number of activity areas. Are tour guides included among those eligible for the exemptions?
According to the State Tax Service under the Ministry of Economy, based on Article 102.1.30-1 added to the Tax Code effective from January 1, 2025, 75% of the income earned by individuals engaged in the following activities — provided that their annual income (without taking expenses into account) from these activities does not exceed 45,000 AZN — is exempt from income tax: services in the field of software development, project design and decoration services, translation services, advertising services, research and analytical activities, services provided in the fields of science, education, culture, and sports, legal services, services of independent auditors, accounting and financial consulting services, journalism activities, market research, valuation activities, delivery and courier services (excluding freight transportation by vehicles), tour guiding, and export of services.
Accordingly, if the annual income (excluding expenses) earned by individuals engaged in tour guiding does not exceed 45,000 AZN, 75% of that income is exempt from income tax.
The tour guides cooperating with the tourism company I manage have not been able to benefit from the 75% tax exemption introduced by the amendments to the Tax Code in 2024, which has resulted in an increased tax burden for them. We have heard that, starting this year, new tax exemptions are being granted for a number of activity areas. Are tour guides included among those eligible for the exemptions?
According to the State Tax Service under the Ministry of Economy, based on Article 102.1.30-1 added to the Tax Code effective from January 1, 2025, 75% of the income earned by individuals engaged in the following activities — provided that their annual income (without taking expenses into account) from these activities does not exceed 45,000 AZN — is exempt from income tax: services in the field of software development, project design and decoration services, translation services, advertising services, research and analytical activities, services provided in the fields of science, education, culture, and sports, legal services, services of independent auditors, accounting and financial consulting services, journalism activities, market research, valuation activities, delivery and courier services (excluding freight transportation by vehicles), tour guiding, and export of services.
Accordingly, if the annual income (excluding expenses) earned by individuals engaged in tour guiding does not exceed 45,000 AZN, 75% of that income is exempt from income tax.